Litigation Capital Manag... Share Discussion Threads

[makinbuks] 28/2/2023 17:25

Good luck with that! Getting anywhere against the Indian Government will be a tall order. I mean in general, knowing nothing of the case.

[robsy2] 28/2/2023 17:15

another meaty contract signed.

Panthera Resources PLC - gold explorer with projects in India and west Africa - Executes conditional agreement for USD10.5 million worth of litigation financing with LCM Funding SG Pty Ltd, a subsidiary of AIM-listed Litigation Capital Management Ltd. Funds to support firm's damages claim against India for breaches of obligation under Australia-India bilateral investment treaty. Damages claim relates to Bhukia project, where Panthera says it has "provided all of the funding and managed the joint venture exploration programmes". The right to be granted a prospecting licence over Bhukia through its JV holding has been "consistently frustrated over an extended period of time" by government of Rajasthan.

[jonwig] 27/2/2023 09:55

H1 results plus 11:00 webinar 14 March. Register:

[luweiluwei] 24/2/2023 15:53

Jonwig, there should be 30+ cases now at the 33+ month mark.
Almost all of these should resolve this year.
A lot of that contract costs should be moving to current.

[jonwig] 23/2/2023 20:16

Luwei - maybe not every two weeks, but also maybe quite often! Why?

At 30 June they had, under Contract Costs, current assets £12m, non-current assets £45m (I'm taking own balance sheet alone).

This should mean that they expect £12m of costs to be resolved between June '22 and June '23. That is, if I've read AASB correctly. Today's RNS suggests accounting for £1.7m (ie. AUD 2.9m) of the £12m. Of course there might be slippage into the next year.

It's a system I'm neither familiar with not altogether clear about. If anyone can correct me, please do.

[luweiluwei] 23/2/2023 18:12

They should have a news release every two weeks this entire year given the maturity of their cases.

[blueball] 23/2/2023 17:23

Bull kumo break-out today.

[tradertrev] 23/2/2023 17:20

If a defendant becomes aware of a funder helping the plaintiff, they are more likely to try an early (but cheap) settlement. It's a moot point whether this is better for justice, but funders probably end up making less money from early settlements (but probably at a higher IRR).

[96tom] 23/2/2023 13:20

is it to be understood that the LIT won the PRAIRIE lawsuit from Australia?

[johnwig] 23/2/2023 11:04

Not so sluggish now. But little volume. All hands to the pump, holders!

[scubadiverr] 23/2/2023 11:00

You would certainly hope it would have no bearing. I'm sure it's not the proposers' motivation, but greater disclosure and transparency may actually generate more awareness and interest in lit fin?

[maddox] 23/2/2023 10:52

Yes Jonwig, that's the answer I've received when I've pursued further information - even when related to long-settled cases. One can imagine it's potentially detrimental to the case if the Judge sees a running commentary on proceedings - but the funded party will typically insist on confidentiality on closed cases.

Interesting article - thanks for posting. It doesn't look like mandatory court disclosure is coming anytime soon. Presumably, the supporters of the proposal think that a case will be weakened if it is funded by Lit Fin? IMHO it shouldn't have a bearing on the merits of the case - am I missing something?

[johnwig] 23/2/2023 10:48

The share price is beginning to respond, albeit sluggishly. I suppose the best time to invest is when it appears very likely or probable there is some very good news in the offing. It's only when that news is properly and quantifiably confirmed that the bigger institutional investors will dare to come in. This may be the last chance that private investors will have.

[jonwig] 23/2/2023 09:39

I would imagine it's up to the funded party to decide on the level of disclosure, and I can understand why some wouldn't want any at all.

In the US a few years ago there was a move by some Republicans in Congress to force disclosure of any funding involved in every civil case. This reform seems to be making progress:

[maddox] 23/2/2023 09:10

Good news flow on some significant progress on cases - clearly lots of detail and valuation missing. Nevertheless, very welcome.

[the air marshall] 23/2/2023 09:02

Another good announcement from the company this morning. Like London buses, eh what?


RNS Number : 8270Q

Litigation Capital Management Ltd

23 February 2023

23 February 2023

Litigation Capital Management Limited

("LCM" or the "Company")

Progress on direct balance sheet investment

Litigation Capital Management Limited (AIM:LIT), an alternative asset manager specialising in dispute financing solutions internationally, announces positive progress on an investment forming part of its portfolio of direct investments.

Successful award in investment in arbitration

The Company is pleased to announce a positive development on one of LCM's 100% direct balance sheet investments which was heard by an ICC International Court of Arbitration tribunal. A partial award on liability and quantum was granted in favour of the funded party. This means that the funded party has succeeded in the claim and the only matter yet to be determined is the costs award. The Company expects the funded party to also be successful in an award of its costs, however, that costs award does not affect LCM's interest or its potential returns.

The award is subject to challenge in the court by the respondent. That challenge is not in the nature of an appeal. LCM is confident that the award will be upheld.

LCM has invested approximately AUD$ 2.9m (USD $2m) in this arbitral dispute. The investment performance is protected by a compounding interest rate.

Patrick Moloney, CEO of LCM, commented: "We are pleased with the positive adjudication in this investment. Despite the Respondent challenging the award we are confident that the award will be maintained. In the current uncertain macro-economic environment our direct investments, as well as those made alongside our fund investments, continue to demonstrate the non-cyclical and uncorrelated nature of the returns from litigation funding.

This award is expected to generate a return in line with management expectations".

[jonwig] 23/2/2023 07:09

Positive outcome for an unnamed own balance sheet investment:



Initial investment AUD 2.9m. Nothing else quantiffied. Award size subject to challenge.

[jackson83] 22/2/2023 16:22

nice volume today .... STRONG BUY

[the air marshall] 21/2/2023 13:36

A decent amount of volume,eh what? For LIT anyway...

[rexrandi] 20/2/2023 16:32

Woof Woof. Canine have a hump, pls?

[johnwig] 20/2/2023 16:20

From City AM:

"An Australian litigation funder has more than doubled its money after giving Carillion’s liquidator millions to fight a £1.3bn lawsuit against KPMG.

Litigation Capital Management (LCM) has generated more than £7m in profits after funding the claim brought by Carillion’s liquidator against the Big Four firm, the Aussie firm said today.

LCM’s announcement comes after KPMG on Friday said it had agreed to settle the £1.3bn Carillion case for an undisclosed sum, after Carillion’s liquidator first sued the auditor in February 2022.

The lawsuit claims KPMG’s incompetence in auditing Carillion’s accounts lulled the construction firm’s board into a false sense of security that ultimately led to its 2018 collapse.

KPMG received £29m in fees for its audits of Carillion over a 19-year period before the construction firm imploded in 2018, in a process that led to 3,000 job losses and £7bn in unpaid debts.

Carillion’s liquidator subsequently filed its £1.3bn lawsuit against KPMG, in line with its duties to the construction firm’s creditors to maximise the recovery of any losses.

Litigation funders raise cash from investors with a view to bankrolling lawsuits on a ‘no win, no fee’ basis and taking a cut of any potential winnings.

LCM first began funding the claim against KPMG in 2021, after Carillion’s liquidator “went to the litigation finance markets” in pursuit of external cash, the fund’s chief executive Patrick Moloney told City A.M.

He explained that bankrupt companies seeking to sue auditors often require external funding, due to lacking sufficient cash to fund lawsuits themselves.

The case saw LCM invest £5.2m in the case before today announcing it had generated £12.5m returns, including £7m in profit.

Moloney explained that funds raised from US and European pension funds, university endowments, and investment banks were used to bankroll the Carillion claim."

[riverman77] 20/2/2023 16:16

Article states profit of £7m but of course it should be in AUD (and 6.3m not 7m}.

[mighunter] 20/2/2023 16:02

hTTps://www.cityam.com/kpmgs-carillion-settlement-generates-7m-profit-for-aussie-litigation-funder/

[jonwig] 20/2/2023 14:48

Doh!

Yes it was, but it appears today as a new RNS-R on my ADVFN portfolio list. Hence my confusion.

[riverman77] 20/2/2023 14:43

The 'companion' announcement you refer to was released back in December.